The latest labour force data is good news for most workers, as wages went up while unemployment remained low. But economists warn that the tight labour market makes an oversized Bank of Canada rate hike all the more likely, which could dampen economic growth and even cause a recession.
Sondhi said some of the details were encouraging, with the number of hours worked climbing and unemployment falling further. As inflation continues at an exceptionally high rate, wages saw a bigger boost in June than in previous months. Average hourly wages rose 5.2 per cent year over year, compared to 3.9 per cent in May and 3.3 per cent in April.
“This has happened particularly in Ontario and Alberta, where they’re setting very strict limits … despite the burnout, despite the fact that these workers were on the front lines,” said Macdonald.
Sondhi said TD still expects the Bank of Canada to take an aggressive rate hike next Wednesday, given low unemployment and wage growth.
🤡🤡🤡🤡🤡
Great job BoC, lose us jobs and raise our costs to help protect the rich from….having the poor and middle class catch up to them.
Lot of welfare cases in my area.
Lol